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UCSD Settles with US DOJ for $2.98M Over Allegations of False Billing for Genetic Tests

NEW YORK – The US Department of Justice announced on Tuesday that the University of California, San Diego Health System has paid $2.98 million to resolve allegations of false billing. 

The health system was accused of ordering and submitting referrals for medically unnecessary genetic testing from December 2015 to October 2019. The testing was performed by CQuentia Arkansas Labs, CQuentia NGS, and Total Diagnostic II, and the DOJ alleged that the false claims were submitted to Medicare for the genetic tests.

"Hospitals are the gatekeepers for medical care and are expected to ensure that all services performed at their direction, including genetic tests, are medically appropriate," Brian Boynton, acting assistant attorney general for the DOJ's Civil Division, said in a statement.

"Ordering unnecessary genetic tests creates a drain on vital government-funded health care programs like Medicare," added Randy Grossman, the US attorney for the Southern District of California.